Food Price Index Of The United Nations Food And Agriculture Organization Fell For Three Consecutive Months, Continued To Decline in June

The FAO Food Price Index* 2022 averaged 154.2 points in June, down 3.7 points (2.3%) from the previous month and down for the third month in a row, but still up 29.0 points (23.1%) year-on-year. the downward movement in June was due to lower international prices for vegetable oils, cereals and sugar, although dairy and meat prices showed an increase.

The FAO Cereal Price Index averaged 166.3 points in June, down 7.2 points (4.1%) on the year, but still up 36.0 points (27.6%) year-on-year. International wheat prices retreated by 5.7% in June after approaching record highs in May, but were still up 48.5% y-o-y. The index was pulled down in June by a range of factors, including increased supplies for the new Northern Hemisphere harvest, improved crop conditions in some major producing countries such as Canada, a positive outlook for Russian production and a slowdown in global import demand. International coarse grain prices fell by 4.1% in June, but were still up 18.4% year-on-year. World maize prices came under downward pressure, down 3.5% in June, as supplies increased in the current season due to rapid progress in the Argentine and Brazilian maize harvests, while crop conditions in the US turned positive. All signs point to a slowdown in economic growth. With this impact, the demand outlook is worrying and downward pressure on prices is becoming more pronounced. For other coarse grains, sorghum and barley prices fell by 4.1 per cent and 6.1 per cent respectively in June, while maize and wheat prices also weakened together. International rice prices continued to rise in June due to strong demand for indica and basmati aromatic rice, combined with a reduced supply of basmati aromatic rice.

The FAO Vegetable Oil Price Index averaged 211.8 points in June, down 17.4 points (7.6%) from the previous month, due to lower prices across palm oil, sunflower oil, soybean oil and rapeseed oil. International palm oil prices fell for the third consecutive month in June as production in the main producing countries continued to increase in the current season, coupled with the prospect of increased export supplies following the large accumulation of domestic stocks in Indonesia. On the other hand, world quotations for sunflower and soybean oil also showed declines due to rising costs in recent months and low global import demand. In the case of rapeseed oil, international prices were lower as a result of reduced demand on the one hand and the imminent launch of the new crop on the other.